Mining in Mongolia is important to the national economy. Coal, copper, and gold are the principal reserves mined in Mongolia. Several gold mines are located about 110 kilometres (68 mi) north of Ulaanbaatar, such as Boroo Gold Mine and Gatsuurt Gold Mine. Khotgor Coal Mine is an open-pit coal mining site about 120 kilometres (75 mi) west of Ulaangom. Ömnögovi Province in the south of Mongolia is home to large scale mining projects such as the Tavan Tolgoi coal mine and the Oyu Tolgoi copper mine. Oyu Tolgoi mine is reported to have the potential to boost the national economy by a third but is subject to dispute over how the profits should be shared.[1]
Mongolia Energy Corporation, a mining and energy company operating in Mongolia and Xinjiang and Erdenet Mining Corporation, a joint Mongolian-Russian venture, account for a large percentage of the mining in the country, but Anglo-American companies such as Rio Tinto and Canadian companies such as Turquoise Hill Resources are active in the country and have agreements with the government. The government institution responsible for overlooking mining development in the country is the Mongolian National Mining Association.
Coal mining
Mongolia hosts 10% of the world's known coal reserves at an estimated 162 billion tonnes in 2011 with 17 operating coal mines. Mongolia exported 72% of the 25 million tonnes of coal produced in 2010, making it the countries largest export (which had previously been copper). The largest customer for coal was China, accounting for over 82% of all exported coal.[2]
Copper mining
Erdenet Mining Corporation is a joint venture between the governments of Mongolia and Russia and was established in 1976. As of 2007[update] Erdenet was accounted for 14% of Mongolia's gross domestic product (GDP). While the mine has been exporting copper concentrate since production began, there are plans to create industry within the country to manufacture finished products (such as copper wire) from concentrate from the mine.[3]
Canadian-based Ivanhoe Mines (now Turquoise Hill Resources) discovered the gold-copper ore deposit of what would be developed into the Ouy Tolgoi mine in 2001 in the Gobi Desert of Mongolia. It is in an area known as Oyu Tolgoi (Mongolian for Turquoise Hill),[4] where in the time of Genghis Khan outcropping rocks were smelted for copper.[5] By 2003 there were 18 exploration drill rigs on the property employing approximately 200 people, and Oyu Tolgoi was the "biggest mining exploration project in the world."[4] In January 2013 Oyu Tolgoi started producing concentrate from the mine. [6] As of 2010, the estimated cost of bringing the Oyu Tolgoi mine into production was US$4.6 billion,[7] making it (financially) the largest project in Mongolian history;[8] however, by 2013 costs had ballooned to $10 billion.[9] The mine will account for more than 30% of Mongolia's GDP.[10]
Gold mining
References
- ^ "Dividing up Mongolia's mining riches from Oyu Tolgoi". BBC. 27 March 2013. Retrieved 12 May 2013.
- ^ The Report: Mongolia 2012. Oxford Business Group. 2012. p. 97. ISBN 978-1-907065-53-8. Retrieved 13 May 2013.
- ^ Jeffries (20 March 2007). Mongolia: A Guide to Economic and Political Developments. Taylor & Francis. pp. 74–75. ISBN 978-0-203-96203-9. Retrieved 13 May 2013.
- ^ a b Grainger, David (22 December 2003). "The Great Mongolian Gold Rush The land of Genghis Khan has the biggest mining find in a very long time. A visit to the core of a frenzy in the middle of nowhere". CNN Money (Fortune Magazine). Retrieved 19 January 2010.
- ^ Brooke, James (15 October 2004). "Mining brings the Gobi Desert to life". The New York Times. Retrieved 19 January 2010.
- ^ Lazenby, Henry (1 February 2013). "Oyu Tolgoi produces first concentrate". Mining Weekly. Retrieved 1 February 2013.
- ^ Morrison, Rod (17 June 2010). "PFI - Oyu Tolgoi mine picks two". Reuters. Retrieved 22 June 2010.
- ^ March, Stephanie (15 January 2010). "Concern over giant Mongolian min". Australian Broadcasting Corporation - Radio Australia. Retrieved 18 January 2010.
- ^ Michael Kohn; William Mellor (April 9, 2013). "Mongolia Scolds Rio Tinto on Costs as Mine Riches Replace Yurts". Bloomberg Markets Magazine. Retrieved May 5, 2013.
- ^ "Oyu Tolgoi Gold and Copper Project, Mongolia". Mining-Technology. Retrieved 21 April 2010.
